Debt Service Coverage Ratio Loan (DSCR)
DSCR loans are used by new investors to buy their first rental and experienced investors to grow their portfolios. DSCR loans are only for rental properties that generate cash flow, and because they are built for rental properties, DSCR qualification is based on property rental income, not personal income.
We offer flexible terms, and, in some cases, our loans can be approved in as fast as two weeks. If this is your first time purchasing a rental property, our experienced loan officers can guide you through the process.
So, whether it’s a single family home, multifamily home (up to 8 units), condominium, or townhome, get in touch with us to ask about our DSCR loan to fund your next rental property.
DSCR Rental Property Loan Terms
- Loan Amounts up to $2M
- Up to 80% Loan to Value (LTV) for Purchase / Rate & Term Refinances
- Up to 75% Loan to Value (LTV) for Cash-Out Refinances
- As low as .75x DSCR with 65% Max LTV
- Fixed and ARM options available, based on a 30-year amortization; Interest-only options
- SFRs / 2-4 Units / Condos / Multi-Family
- Credit score as low as 660 FICO
Blanket Mortgage
If you hold multiple properties at any given time, ask us about our blanket mortgage. This loan provides some great benefits to investors with a smaller portfolio.
- Single monthly payment
- Up to 20 properties
- Reduced lender fees
Portfolio Mortgage
For larger portfolios, we offer the same level of convenience as a small portfolio but with additional benefits for your volume.
- Up to $20M in Financing
- No maximum number of properties
- Reduced lender fees, single payment
Types of Properties We Fund
The difficult part of rental properties is the first step of purchasing the property. You may find that you don’t have the extra money to buy the property outright. That’s where FMS Investor Financing comes in.
Single Family Rentals (SFR)
1-4 Unit Multifamily Properties
5-8 Units (purchase only)
Townhomes
Condos
What Is a Capitalization Rate?
This measure is computed based on the net income that the property is expected to generate and is calculated by dividing net operating income by property asset value and is expressed as a percentage.
The link to this calculator is provided for reference only. The results may vary from an actual transaction and are intended to be illustrative of the calculations involved and should not be relied upon in making financial decisions. Please be aware that the results are for informational purposes only and do not constitute advice nor a loan commitment for any specific situation.
Capitalization Rate Calculator
Annual Net Income
855,900 $
Cap Rate 10.5 %
The results expressed with these calculators are broad and readers should review their individual circumstances and discuss their specific situation with professional advisors prior to making any decisions. We disclaim all responsibility or liability for damages incurred by anyone making decisions based on the hypothetical information provided therein.
What Sets Us Apart
Key Features
Available for Individuals or Entities
No prior experience required
Tax returns not required
FAQs
The FMS Investor Debt Service Coverage Ratio (DSCR) is a long-term loan, typically with a 30-year term, that is for a rental property. The loan amount is based on the cash flow from the particular rental property.
The Debt Service Coverage Ratio is determined by comparing the property’s net operating income to the respective project’s debt obligations, or total expenses.
No, you are not limited to the number of properties.
FMS Investor DSCR loans are intended for investors in non-owner occupied properties.
We’re here to help you succeed!
All terms subject to credit approval. All loans must be solely for a business or commercial purpose and secured by a non-owner-occupied property. In AZ, CA, ID, MN, OR, UT, and VT, products are offered by BPL Mortgage, LLC NMLS ID #2574042. Products not available in ND, NV, or SD. In all other states not previously listed, products are offered by Constructive Loans, LLC d/b/a FMS Investor Financing.
Please visit www.nmlsconsumeraccess.org for additional licensing/registration information. All loans made and arranged in California pursuant to a California Financing Law License # 60DBO-82792. Rates, terms, and conditions are subject to change from time to time without notice. This advertisement is intended for mortgage professionals only.
*Based on tiering and diligence.
**Some exceptions apply. Discuss with your Investor Loan Consultant.
This website may be used by commercial lenders, brokers and borrowers and may not be used by members of the general public or residential owner occupied mortgage loan applicants in particular. The use of this website DOES NOT constitute an application for a mortgage loan and the pre-qualification and program recommendations generated by this website DO NOT under any circumstances constitute either a formal or informal loan approval or rate commitment. Terms and pricing recommendations generated by this website are subject to change without notice. Adjustable rate programs, fixed rate programs, pre-payment penalties, and applicable fees will apply according to separate guidelines and may change the nature of the pre-qualification and program recommendations generated by this website.
